Key Highlights

  • The all-stock merger carries an estimated equity value of approximately $2.43 billion based on Olin's last closing price.
  • Huntsman shareholders will receive 0.5476 Olin shares per share, with Olin shareholders owning 54.5% of the combined company.
  • The deal targets more than $400 million in cost synergies, with the majority realised within 24 months of closing.
  • OlinHuntsman will also generate approximately $125 million in cash tax benefits through accelerated net operating loss utilisation.

Olin Corporation (NYSE:OLN) and Huntsman Corporation (NYSE: HUN) announced a definitive all-stock merger of equals on June 16, 2026, to create OlinHuntsman Corporation, a vertically integrated North American chemicals company with combined 2025 revenues of more than $12.5 billion. The transaction has been unanimously approved by the boards of both companies and is expected to close in the first half of 2027.

Under the deal terms, Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share held. The exchange ratio was set using volume-weighted average prices over the 30 trading days ending June 12, 2026. Upon completion, Olin shareholders will own approximately 54.5% of the combined company, with Huntsman shareholders holding the remaining 45.5%. Based on Olin's most recent closing price of $25.30, the transaction implies an equity value of approximately $2.43 billion for Huntsman.

The merger combines two complementary chemicals businesses. Olin brings upstream manufacturing capabilities including chlorine, caustic soda, and electrochemical unit production. Huntsman contributes downstream polyurethane systems, formulation technologies, and advanced materials serving automotive, construction, infrastructure, and industrial end markets. The vertical integration is expected to create a structurally lower-cost producer able to convert upstream chemical output into higher-value downstream products, unlocking margin improvement across the cycle.

The deal targets more than $400 million in total cost synergies and integration benefits. Over $300 million of that figure is expected within 24 months of closing, with the full amount in place by end of year three. Identified sources include purchasing and raw material integration, operational efficiency, and administrative savings. An additional $100 million in raw material integration benefits is projected from 2031, and approximately $125 million in cash tax benefits will be realised through the acceleration of net operating losses.

Olin's chief executive Ken Lane will lead OlinHuntsman as chief executive, while Peter Huntsman will serve as non-executive chairman of the combined company's board. Huntsman's chief financial officer will become CFO of OlinHuntsman, and Olin's current CFO will take on the role of chief integration officer. The combined ten-member board will have equal five-director representation from each company. OlinHuntsman will be headquartered in The Woodlands, Texas, and Olin's Winchester ammunition business will continue to operate within the combined company.

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.